You should certainly get with your agent immediately to get your earnest money back. Once the bank declined your offer they have no right to your money. Your realtor should handle this for you. Just as an FYI, I have a listing on a short sale for which the bank received an offer on January 21. Today, March 19, we still do not have an answer. Fortunately, the buyers are willing to wait this one out. If you are wanting to get the short sale and bank owned deals that are out there right now you will most likely have to wait on them to respond. Teh banks have always been slow to respond but with the huge number of transactions they are handling the time delay is greater now than ever. If you can afford to wait it may pay off.
Nelene Gibbs, Realtor, e-Pro
William E. Wood & Associates
mail to: email@example.com
In the future put your good faith deposit in escrow. Notify the seller that there was a good faith deposit made so they feel comfortable and that you are serious. If things don't work out you can get your money back as escrow is unbiased and will return your money to you directly.